How To Start An Llc In Illinois is the same as how to start a corporation in any other state. Both the owner of the business entity and the members will be considered separate from the rest of the business. The only difference between a corporation and an LLC is that the members of an LLC have no liability for debts of the business, unlike the members of a corporation. However, even if members are financially attached to the business, they are still not required to pay taxes on the business income.
how to start an llc in illinois can vary depending on which state your business will be based in. Illinois has two unique configuration options. First, there is what is called a "limited liability" business license. Limited liability businesses enjoy some very nice advantages over corporations, the main one being that the owners are only personally responsible for liabilities of the business. Illinois does not recognize corporations or limited liability partnerships (LLPs) as legal entities. Instead, owners are considered to be merely owners.
Illinois limited liability business licenses are not available to all people. The requirements needed to obtain such a license vary from one state to the next. Each Illinois state department of revenue holds guidelines and forms that must be completed and filed prior to the application for the license. This includes proof of personal residence within the county in which the business will be registered. As you might expect, fees for this paperwork can be quite expensive.
How To Start An LLC In Illinois
Second, there is the "sole proprietorship" option. This is perhaps the easiest type of how to start an llc in Illinois to understand. A sole proprietorship is simply the name of the person doing the work and the business entity itself. The person who is actually performing the duties is called the "sole proprietor." If one wants to establish an LLC in Illinois then he or she must choose a unique name to incorporate with the business.
If the person wants to incorporate as a corporation, he or she will need to file a form with the state's attorney general. This is called a "statement of organization." Once the paperwork has been filed the LLC will receive its official name. At this point the owner of the LLC will own all of the shares in the business. He or she will continue to be the owner until such time as he or she sells the shares out to others or cancels the LLC.
How to start an llc in Illinois can get complex if one wishes to incorporate as a limited liability company. However, the options become even more appealing when one chooses to incorporate as a corporation. This means that the business will have the benefits of being able to deduct corporate income taxes at the corporate level. The IRS allows individuals to deduct up to fifty percent of their income from their personal income taxes.
Those looking for information on how to start an llc in Illinois should understand that they will need to register the business before it can complete its registration. Illinois has an online filing service that allows an individual to obtain his or her IRS tax return. Once the business has its federal tax ID number, it will be easier for the individual to start paying the tax withholdings required by law.
Forming an LLC in Illinois can be accomplished quite easily. However, there are several things that an individual needs to consider before beginning the process. One of those is finding the right business name. Another is ensuring that all of the necessary filings and paperwork are filed appropriately. Before deciding how to start an llc in Illinois, an individual should research the various options thoroughly and then make a decision based upon their research.
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